The traffic management market in Europe is expected to grow from US$ 13,756.83 million in 2022 to US$ 27,187.27 million by 2028. It is estimated to grow at a CAGR of 12.0% from 2022 to 2028.
With the significant rise in population, the demand for better transportation facilities is also rising proportionally. It includes better road conditions, smooth traffic flow, and connectivity between different areas. Thus, various government agencies are focusing on developing their road infrastructure. Multiple projects are being regularly undertaken, across the region, to reduce connectivity woes, and are expected to include appropriate traffic management systems. Additionally, several nations focus on developing smart cities and smart roadways.
The smart roadways concept brings harmonization between the road and the vehicle. Roads are planted with different sensors, which will collect multivariate data. Such data will be exchanged with vehicles traveling on the street, thus, ensuring a safer and smoother ride. For example, sensors from the road can alert a driver about a pothole, while data from vehicles can be used to gauge the traffic level at each time point. Such multivariate data can be used to anticipate traffic disruptions, pollution levels, road conditions, and reporting accidents. Smart roadways can aid traffic management, vehicular and pedestrian safety, and environmental monitoring.
In Europe, a smart roadways project titled C-Roads project is being implemented. C-ITS (Co-operative Intelligent Transport Systems) based interconnection between roads and vehicles is intended to be created through this project. The project involves installing various sensors across the European highway network and control centers. Control centers will collect and disseminate data based on protocols, such as V2I (Vehicle to Infrastructure), V2V (Vehicle to Vehicle), and V2X (Vehicle to Everything). While connecting the European network will require additional time, several experiments have been conducted on the A22 highway connecting Italy to Germany and Austria. However, smart roadways can only succeed if all or most vehicles are IoT (Internet of Things) enabled.
Most modern vehicles are increasingly integrating IoT devices and aiding in developing smart roadway projects. Such developments are expected to boost the implementation of the Integrated Traffic Management System (ITMS) and Advanced Traffic Management System (ATMS) during the forecast period. ATMs focus on improving traffic flow and enhancing vehicular safety, while ITMS focuses on modernizing traffic management through IT (Information Technology) applications. Considering the rising expenditure on infrastructure, growing demand for safety, and increasing integration of IoT-enabled devices inside vehicles, the traffic management market can be expected to grow quickly during the forecast period.
With new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the Europe traffic management market at a substantial CAGR during the forecast period.
Europe Traffic Management Market Segmentation
The Europe traffic management market is segmented by component, application, and country. Based on component, the market is segmented into hardware, software, and services. In 2022, the hardware segment held a larger market share. On the other hand, the software superconductors segment is expected to register a higher CAGR during the forecast period.
Based on hardware, the market is segmented into camera, display boards, and sensors. In 2022, the camera segment held a larger market share. On the other hand, the sensors segment is expected to register a higher CAGR during the forecast period.
Based on software, the market is segmented into cloud and on-premise. In 2022, the on-premise segment held a larger market share. On the other hand, the cloud is expected to register a higher CAGR during the forecast period.
Based on application, the market is segmented into automatic tolling, lane management, parking management, surveillance, traffic signal management, and others. The traffic signal management segment held the largest share in 2022. The surveillance segment is expected to register the highest CAGR in the market during the forecast period.
Based on country, the market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. In 2022, the UK held a larger market share. On the other side, Italy is expected to register a higher CAGR during the forecast period.
AXIS COMMUNICATIONS AB; Cisco Systems, Inc.; Dahua Technology Co., Ltd.; IBM Corporation; Hangzhou Hikvision Digital Technology Co., Ltd.; SGS SA; Siemens AG; Teledyne FLIR LLC; Cubic Corporation; and SNC-Lavalin Group are the leading companies in the Europe traffic management market.